FINEX WEEK

 

 

By SHABBIR H. KAZMI
Updated Feb 22, 2003

 

The money market remained depressed throughout the past week. Outflows occurred on account mismatch in the maturity and the settlement amount of the Treasury Bill auction, but rates continued to fall off. Both short term and outright T-Bill rates fell off right after the auction result that saw the authorities having to reduce the cut-off yields of the 

 

 

one year and three month debt instruments. The overnight market in the early parts of the week was at levels of 3.00% and 4.00% with one week rates also maintaining a firm stance around the same levels. However rates in the short term market eased off sharply and fell off to levels of 1.00% and 2.00%. The two week market did remain at close to 3.50% due to the announcement of the Rs. 10 billion T-Bill pre-auction target amount but fell off sharply as the bid pattern and the result were available. The market dipped sharply with overnight, one and two week activity being witnessed at levels of 0.25%, 1.00% and 1.50%, respectively. The week ended with one and two month rates also maintaining a bearish sentiment and activity in the respective tenors being reported at close to 1.80% and 2.30%. The auction managed to attract a total amount of Rs. 52.70 billion which did not come to much of a surprise for this liquidity flooded market. The acceptance of the large amount of Rs 5.025 billion against the three month paper was a slight shock keeping in mind that previously an acceptance of such magnitude had been in May 2002 while Rs. 5.075 billion was acceptance against the one year paper. The cut-off yields were record low yet again i.e. at 3.20% and 3.60% for the papers. The result caused the secondary market for T-Bills to sharply fall with significant interest in the 6th Feb six month paper. Heavy trading was witnessed in between the narrow band of 2.80% and 2.90%.

YIELD PROFILE

FEDERAL INVESTMENT BONDS

.

THIS WEEK

1 WEEK AGO

1 YEAR AGO

1 Year

03.20

03.60

07.00%

2 Year

03.65

03.90

07.75%

3 Year

03.85

04.20

05.80%

4 Year

04.00

04.20

09.00%

5 Year

04.30

04.50

09.50%

10 Year

05.25

05.40

10.75%

 

 

 


 

AUCTIONS

BID DATE

INSTRUMENT

RESULT

SETTLEMENT

Feb 19 T-Bill 03 mth. Feb 19 Feb 20
Feb 19 T-Bill 06 mth. Feb 19 Feb 20

TARGET AMOUNT

BID AMOUNT

ACCEPTED AMOUNT

Rs.10,000 Mln. 

Rs.52,700 Mln. 

Rs.10,100 Mln.

 

 

 


 

MATURITIES

INSTRUMENT

DATE

AMOUNT

T-Bill

06 Feb 

34,912 Mln.

T-Bill

20 Feb 

2,600 Mln.

 


 

REPO RATES

 

THIS WEEK

1 WEEK AGO

1 YEAR AGO

Overnight

00.75

05.50

03.25

1 Week

01.00

04.25

04.00

1 Month

02.05

03.25

05.25

3 Month

02.45

03.00

05.50

6 Month

02.70

03.20

06.15

1 Year

03.00

03.45

06.75

 

 

 


 

TREASURY BILL RATES
MATURING THIS WEEK 1 WEEK AGO 1 YEAR AGO

1 Month

02.55

03.75

05.25

2 Month

02.40

03.15

05.35

3 Month

02.65

03.00

05.50

4 Month

02.70

03.00

05.60

5 Month

02.70

03.05

06.05